Tag Archive | Business

Responding to the Goldman Sachs Resignation Letter

I’ve been following the response to Greg Smith’s resignation letter in the New York Times with great interest over the past several days. The letter has been analyzed, parodied and discussed at length. What I find particularly fascinating is that the response brings together a number of issues I regularly look at:  the power of social media in shaping public discourse, the importance of corporate reputation, as well as communication strategy.

The Atlantic Wire reported that the letter cost Goldman $2.15 billion in the markets the day it was released, showing the value of reputation, particularly on Wall Street in today’s environment. In the post-Occupy Wall Street environment, large financial institutions are looking to rebuild trust with the public, clients but also their employees. Greg Smith’s resignation was clearly written with this hostile environment in mind.

An internal memo by Goldman Sachs CEO Lloyd Blankfein was published in Bloomberg shortly after it was sent out to employees that had clearly been written with an eye to being released publicly. Blankfein tries to emphasize that Smith represents a minority opinion and that Goldman works hard to do what’s right for clients. His quick response to try to maintain trust with his employees and the public with a well crafted memo was smart, but not sufficient to quell public discourse.

The Associated Press published an article in the Washington Post, entitled, “Goldman Sachs muppet essay only the latest in a proud tradition of bridge-burning”. It explores the human impulse to have a “Jerry Maguire inspired farewell” and therefore part of the reason this letter struck a nerve and went viral. I’m quoted in the article talking about how this is often a way for employees who feel powerless to enact change to feel like they have a chance to take back some of that power.

The social media environment has kept the letter alive through sharing, but also interacting with the letter through parodies–everything from fake responses from Blankfein to sharing of resignation letters from the past. The New York Daily News did a great roundup of some of the best parodies out there, but one of my favorites is a fake resignation letter from the New York Knicks coach Mike D’Antoni (who really did resign the same day as Greg Smith) published in the Wall Street Journal.

Depending on Greg Smith’s future career goals, publishing his resignation letter in the New York Times may not have been wise, but it gives us another opportunity to bring reputation, trust and the power of social media back to the forefront of conversation–and hear a few good Darth Vader jokes as well.

Inside Fukushima – in pictures

I’ve written several posts about TEPCO and what happened in the aftermath of the earthquake and tsunami on March 11 last year. TEPCO recently let a group of journalists and photographers into the Fukushima nuclear plant where three reactors suffered meltdown after the earthquake. The communication strategy behind this is worth a post in itself, but in the meantime the Guardian has posted a slideshow of fascinating pictures from the visit.

Inside Fukushima–in pictures

Komen leader’s latest apology about Planned Parenthood fiasco goes only halfway

Supporters of Planned Parenthood

 of the Washington Post’s On Leadership section posted about Nancy Brinker, founder and CEO of Susan G. Komen for the Cure’s half-hearted apology about the Planned Parenthood de-funding. I couldn’t agree more with Jena’s assessment of the apology using my framework. I’ve posted it below and  you can see the original article here.

In the world of crisis communications, what has the potential to be more damaging than not issuing an apology? An apology that reads like only half of one.

Nancy Brinker’s response to Sally Quinn’s open letter to the Susan G. Komen for the Cure founder and CEO includes an admission that she made mistakes and an apology to those who were disappointed by the nonprofit’s decision to pull its funding to Planned Parenthood. (Komenlater said Planned Parenthood could reapply for funding.) Brinker says she has learned a lot, including that “that we in women’s health organizations must be absolutely true to our core missions, and avoid even the appearance of bias or judgment in our decisions.”

But what she does not say is more telling. Brinker does not say exactly what she is sorry for. She does not explore what mistakes she made. And she does not address several of the points in Quinn’s letter, from the ambiguity of Komen’s decision to allow Planned Parenthood to reapply—though not necessarily be funded—to why her institution’sshifting explanations for its controversial move were so confusing. It’s also interesting that it seems to have taken criticism from Sally Quinn (who describes herself as a longtime friend of Brinker’s in Washington), more so than the outrage of millions of citizens, to elicit such an admission. Read More…

Blankfein to Speak Out for Same-Sex Marriage

The New York Times Dealbook recently asked me to comment on Goldman Sachs CEO Blankfein’s decision to speak out for same-sex marriage. I have posted some excerpts including my quote below, and you can read the full article in New York Times’ Dealbook here

Lloyd C. Blankfein, the chief of Goldman Sachs who has become a lightning rod for Wall Street critics, might seem an unlikely advocate for same-sex marriage. But his credentials — a public figure in a conservative industry — could make him a powerful voice for that cause.

The Human Rights Campaign, a national organization that promotes equal rights for gay, lesbian, bisexual and transgender people, has persuaded Mr. Blankfein to be its first national corporate spokesman for same-sex marriage, an issue that will come up for a legislative vote in several states this year, including Washington and Maryland. Fred Sainz, an executive with the Human Rights Campaign, said the organization sought Mr. Blankfein, in part, because he is “an unexpected messenger.”

Paul A. Argenti, a professor of corporate communication at the Tuck School of Business at Dartmouth, says Mr. Blankfein’s decision isn’t likely to have any positive impact on the reputation of the firm — or Mr. Blankfein.

“If you are a Goldman employee and you are gay or contemplating coming out, this is great,” he said. But for Goldman and Mr. Blankfein, the issue of same-sex marriage has nothing to do with what Goldman Sachs does. “If Mr. Blankfein was taking a radical stand on pay you could say wow, that’s big. But equality is simply not an issue you associate with Goldman.”

Still, the campaign is sure to turn heads on Wall Street, which despite having made progress on equality issues over the last decade, is still considered to be a male-dominated, testosterone-driven place.

…Read the rest of the article here.

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